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Which tool would the government most likely employ during a period of inflation to stabilize the economy?


raise cash rates

lower cash rates

raise government spending

lower government spending

Verified Answer :

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During a period of inflation the government will most likely employ the following technique to stabilize the economy: raise government spending.Government may decide to increase government spending as a result of a recession. The increase in government spending or a decrease in taxation is an expansionary fiscal policy.

Answer:

Lower cash rates

Explanation:

On odyssey ware this is the correct answer

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